The twin shocks of escalating conflict in West Asia and the growing threat of an El Niño-induced weak monsoon are emerging as the biggest risks to India’s economic outlook, raising concerns over energy security, inflation, growth and the country’s current account balance in the near term, cigarette to FMCG major ITC has cautioned.
These factors may also have second‑order impacts on consumer sentiment and demand conditions and remain key monitorables going forward, the company said in its annual reports.
However, notwithstanding the near-term challenges, the Indian economy is well-poised for rapid growth in the medium term, supported by structural drivers such as a favourable demographic profile, rising affluence, rapid urbanisation, accelerated digital adoption and improved infrastructure and connectivity, ITC said.
Moreover, the Centre’s sustained focus on next generation physical and digital public infrastructure, enhancing the competitiveness of the manufacturing ecosystem, advancing taxation and financial sector reforms and improving ease of doing business is expected to support sustainable growth, it added.
Focus on FMCG
As ITC continues with its multi-year aspirational journey to become the number 1 FMCG player in India, the company reported an 8.8 per cent growth in consumer spend on its FMCG business.
A portfolio of over 30 brands in the food and personal care segment, largely built through an organic growth, represented annual consumer spend of ₹37,000 crore compared with ₹34,000 crore in FY25. The annual spend refers to net sales turnover, including margins and taxes.
ITC said it launched over 100 products during the last fiscal in the space of health and nutrition, hygiene, protection and care and food (on the go indulgences).
ITC has also undertaken selective acquisition under chairman Sanjiv Puri. Its recent acquisitions in the digital-first and organic space delivered an annual run rate of ₹1,350 crore. However, ITC’s mainstay, the cigarette business, came under punitive taxation earlier this year, stoking fears of losing share to non-tax paid cigarettes.
